Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Act current to 2014-10-27 and last amended on 2013-04-01. Previous Versions

Marginal note:Application against estate or succession
  •  (1) Subject to section 43, an application for a bankruptcy order may be filed against the estate or succession of a deceased debtor.

  • Marginal note:Personal liability

    (2) After service of an application for a bankruptcy order on the executor or administrator of the estate of a deceased debtor, or liquidator of the succession of a deceased debtor, the person on whom the order was served shall not make payment of any moneys or transfer any property of the deceased debtor, except as required for payment of the proper funeral and testamentary expenses, until the application is disposed of; otherwise, in addition to any penalties to which the person may be subject, the person is personally liable for the payment or transfer.

  • Marginal note:Act done in good faith

    (3) Nothing in this section invalidates any payment or transfer of property made or any act or thing done, in good faith, by the executor, administrator of the estate or liquidator of the succession before the service of an application referred to in subsection (2).

  • R.S., 1985, c. B-3, s. 44;
  • 2004, c. 25, s. 28.
Marginal note:Costs of application
  •  (1) If a bankruptcy order is made, the costs of the applicant shall be taxed and be payable out of the estate, unless the court otherwise orders.

  • Marginal note:Insufficient proceeds

    (2) If the proceeds of the estate are not sufficient for the payment of any costs incurred by the trustee, the court may order the costs to be paid by the applicant.

  • R.S., 1985, c. B-3, s. 45;
  • 1992, c. 1, s. 14;
  • 2004, c. 25, s. 28.

Interim Receiver

Marginal note:Appointment of interim receiver
  •  (1) The court may, if it is shown to be necessary for the protection of the estate of a debtor, at any time after the filing of an application for a bankruptcy order and before a bankruptcy order is made, appoint a licensed trustee as interim receiver of the property or any part of the property of the debtor and direct the interim receiver to take immediate possession of the property or any part of it on an undertaking being given by the applicant that the court may impose with respect to interference with the debtor’s legal rights and with respect to damages in the event of the application being dismissed.

  • Marginal note:Powers of interim receiver

    (2) The interim receiver appointed under subsection (1) may, under the direction of the court, take conservatory measures and summarily dispose of property that is perishable or likely to depreciate rapidly in value and exercise such control over the business of the debtor as the court deems advisable, but the interim receiver shall not unduly interfere with the debtor in the carrying on of his business except as may be necessary for conservatory purposes or to comply with the order of the court.

  • Marginal note:Place of filing

    (3) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

  • R.S., 1985, c. B-3, s. 46;
  • 1997, c. 12, s. 27(F);
  • 2004, c. 25, s. 29;
  • 2007, c. 36, s. 13.